Preview

Virgin Case Study

Good Essays
Open Document
Open Document
686 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Virgin Case Study
Virgin Atlantic Airways

3. critically assess how the organisation has employed e-business technologies to perform its key business processes and improve service levels for its customers
To begin with, the online e-business model of Virgin Atlantic Airways is a business to consumer as the Virgin Atlantic Airways sells plane tickets directly to customers without passing intermediaries.
Virgin Atlantic Airways implements the e business technologies to perform its key business processes and improve service levels for its customers by improving reservation online, provide all convenient services, flight data , route, cost saving ,more flight and news update and promotion.
Reservation Online System
First of all, Virgin Atlantic Airways (2012) stated that the reservation online enhance booking system and increase sales. This is because it is convenient for passengers to check dates and flight. No matters where passenger live, they can reserve online and make a payment directly to Virgin Atlantic Airways through credit cards. Secondly reservation online provide all level of services. So passengers can select the service to suit their need. Virgin Atlantic Airways provide services such as economy class, premium economy class as well as upper class.
Convenient
B2C or Business direct to customer is quite convenient and efficient with airline business (Kotler, 2008) . This reduces the need of sell agents as intermediary. As a result of this, Virgin Atlantic Airways can sell plane ticket at a lower price. Furthermore, e-business technology can increase foreign passengers through Virgin Atlantic Airways booking system. This is because foreign passengers can check the route , flight data and prices to compare with other airline. However, if they find Virgin Atlantic Airways suit their need more , they will book directly with Virgin Atlantic Airways.
Flight Data
E-business technologies make a flight data more accurate and fast due to, the system is operated

You May Also Find These Documents Helpful

  • Good Essays

    We pride ourselves in the service offerings and the ease of the initial purchase of the customers selected product. Airways makes it easy for our customers to learn about our transportation service offerings. To serve the modern online culture of today, we have a state of the art website that allows our customers to look at the flight options, the service level options (coach, business class, first class) and the prices. From here, the customer can purchase the ticket directly through the website. We…

    • 681 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    The first part of this report provides a broad introduction into the business of Virgin Australian by examining its principal sources of revenue, its nature of operating, its competitors, the market share and the regulations affecting its operations. From this, it can be seen that Virgin Australia operates in a very competitive environment and generates revenue by the core business of passenger and cargo transport.…

    • 3794 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    Jet Blue and West Jet

    • 839 Words
    • 4 Pages

    Airline reservation systems have impacted operational activities and decision making. They have made it easier to maintain accounts with other airlines and internal processes between departments are more efficient since the “minus, plus” is done online. There has also been growth in faster service times which leads to increased customer satisfaction since customers can plan, book and pay online. Airline companies are able to make good strategic decisions on which route to monopolize on and how to improve their service by accessing past records about their customers stored by the system. However, on the flip side of the coin, customers’ decisions are also affected during booking times. For example, if the reservation systems are slow and not user friendly, customers can get frustrated and look for other alternative airlines.…

    • 839 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    At the end of March 2003 Virgin Blue posted a profit before tax of $158 billion, $58 billion over their budget and over $100 billion on last year’s results. Virgin Blue also received the best EBITDAR per plane for any airline in the world, beating Qantas by $900,000. This means that the challenge for Virgin Blue is to continue to offer the cheapest flights in the market and maintain their margin.…

    • 2938 Words
    • 12 Pages
    Powerful Essays
  • Best Essays

    Two main political factors in Virgin’s external business environment are deregulation and infrastructure. Before the 1980s airlines were typically controlled by the government, now due to deregulation, governments do not dictate airfares or routes etc and thus leave an open market for new competitors. As there is more competition for market share, airlines are forced to become efficient and competitive therefore driving prices down. Deregulation is said to have caused an estimated 20% in air fares (Dayao, et al., 2009). In 1979 the “open skies” act was introduced. This refers to an international deregulation policy to ‘liberalize the rules and regulations and minimize government intervention’ (USLegal, n.d.) One recent act is the open skies policy between the US and Europe, ‘allowing airlines based in the United States and Europe to fly across the Atlantic between any two airports in each region’ (New York Times, 2008). Although airline deregulation is not a recent concept, ‘its effects are still being felt today’ (Smith and Cox, n.d.) through the emergence of…

    • 2143 Words
    • 9 Pages
    Best Essays
  • Best Essays

    The airline industry is highly cost-driven creating an extremely competitive environment in which to operate. The majority of customers prefer an inexpensive and hassle-free airline experience; for those business customers who previously paid for the extra features, such as first class, the ability to reduce costs has become more important causing them to consider finding lower priced business class seats or flying coach instead. This trend is referenced in Exhibit 1. The airlines which have focused on building their business model to provide a unique or exceptional flight experience in…

    • 5206 Words
    • 21 Pages
    Best Essays
  • Best Essays

    Virgin Holdings Ltd is an expert in the domestic and international travel industry. Previously known as Virgin Blue, and came to the Australian market in year 2000. Virgin is part of Virgin Group consisting of 400 other companies and founded by Richard Branson. At fiscal year end June 2012, flights operated reached 162,817 and 19,468,929 people were carried to 52 destinations. Revenue is $4,175 million with 5,300 employees. Virgin operates globally but domestic operations are the main income stream. Product line for short haul and long haul international flights as well as domestic include saver lite, saver, flexi, premium saver, premium, business saver, business.…

    • 1601 Words
    • 7 Pages
    Best Essays
  • Good Essays

    E-Business allows companies to contact with their internal and external processes more professionally and successfully. Also work more closely with their suppliers and partners to have a better satisfy the needs and expectations of their customers, leading to improvements in overall business performance.…

    • 828 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    ‘Since it was founded almost twenty years ago, Virgin Atlantic Airways has become Britain’s second largest airline serving the world’s major cities. Virgin Atlantic is the quintessential Virgin story. It has every ingredient: the small…

    • 4528 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    Case Study 2

    • 2865 Words
    • 12 Pages

    Web based commerce and internet technology have dramatically transformed the airline industry throughout the past thirteen years. The internet has enabled travelers to bypass the traditional distribution pattern of travel agencies and enabled airlines to sell more directly to passengers (European Commission, 2006). Since the mid-1990s there have been some major changes to the airline ticket distribution industry which were both a result of internet technologies (GAO, 2003). Major U.S. Airlines claimed a net operating loss of nearly $10 billion in 2002 and had paid over $7 billion to distribute tickets to consumers (GAO, 2013). These distribution expenses include booking fees to global distributions system to the amount of hundreds of millions of dollars (GAO, 2003).…

    • 2865 Words
    • 12 Pages
    Powerful Essays
  • Best Essays

    Figure 1: Top Ten U.S Airlines International Schedules Enplanements, 2008 {draw:frame} {text:bookmark-start} American Airlines engagement in E-Business {text:bookmark-end} AA website has more than 1.6 million site visits per day. AA is deeply dependent on e business as their website involves functioning of many online distribution channels doing business online 24-7. To add to that, at AA.com customers are provided with comprehensive services such as, they can search for and book low fares and award travel; select seats; make hotel, rental car and cruise reservations; get flight arrival and departure information; sign up for flight status notification and even check in and print boarding passes. Providing such services to customers involves aligning with other business partners and stakeholders via online alliances. Other services are, availability of RSS feeds at their website, customers can manage their personalized AAdvantage account online, as well as sign up to receive emails, get customized DealFinder SMS alerts and also customers can compare various flight fare options according to their choices online. Additionally, AA has done localization and adaptation of website in terms of language, pricing, advertisements, communication with local stakeholders and culture for international markets covering North America, Caribbean, South America, Central America, Europe, and Asia and the Pacific. AA.com has twice received the World Travel Award for World's Leading Airline Internet Site. (American Airlines, 2009) Surveys done by SITA (2008) on priorities or reasons for IT investment by airlines given in table 1 below, four main priorities have been identified. Figure 2: Priorities in the IT investment decision {draw:frame} Therefore, it is trend in airline industry to adopt technology, it is not different or strategic of AA to invest in technology; they need to do it to survive in the industry. It can also be confirmed by BDC consulting e-business…

    • 2467 Words
    • 10 Pages
    Best Essays
  • Satisfactory Essays

    Business Realities

    • 299 Words
    • 2 Pages

    E-business uses the global reach of the Internet to connect customers, vendors, suppliers and employees together, and the information they need, to do a better job. It represents a secure, reliable, scalable and manageable framework that builds on existing technology investments to prepare for the future. It is about Web-enabling core business processes to improve customer service, reduce product cycle time, get better results from limited resources and sell products electronically. As a sales associate for Avon, I found the internet to be one of the best ways to offer customer convenience and efficiency. It also allowed me a better option of virtually advertising new and upcoming sales for to customers from the convenience of my home.…

    • 299 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Virgin Atlantic Essay

    • 541 Words
    • 3 Pages

    With regard to the place, the Virgin Atlantic has the bases in Gatwick, Heathrow and Manchester Airports. The company distributes its products online, through its owned website and those of tour operators and travel agents. Tickets can be also booked via phone.…

    • 541 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Virgin Atlantic Airlines

    • 1053 Words
    • 5 Pages

    The main challenge facing Virgin Atlantic Airlines is identifying and executing a strategy that will help it become a more profitable and established airline in the industry going forward. Virgin had an income loss of 14.5 M pounds in 1991-92, and a small profit of 0.4 M pounds in 1992-93(Exhibit 2). In contrast, British Airways had $297.7 M profit which is 3.19% of its total sales in 1992 (Exhibit 10).…

    • 1053 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Since it was established by Richard Branson in 1970, the Virgin Group has gone on to operate in sectors ranging from music and travel to financial services and retail, with three key brands: Virgin Atlantic, Virgin Holidays and Virgin Media. magazine and along with its multi-awardwinning Heathrow Clubhouse, demonstrates how Virgin Atlantic continues to strive for exacting standards within the airline industry. Virgin Holidays offers bespoke holiday experiences throughout the world, from Alaska to Zanzibar, backed up with expert knowledge and innovative customer service from booking through to resort. It is the UK’s largest long haul holiday company and the market leader to the US, the Caribbean and the Middle East. Its extensive retail network of Virgin Holidays stores – 46 throughout the UK – offers an alternative to the traditional high street travel agent experience. Launched in 2007, Virgin Media was the first company to provide for all of its customers’ digital needs in one package, bringing broadband, television, phone and mobile services to almost 12 million homes nationwide. It owns the largest fibre optic network in the UK and it is purpose-built for the way digital media is consumed today. Films,…

    • 1499 Words
    • 6 Pages
    Better Essays